Are you thinking of getting retirement early in your life? Are you among those people who find it difficult to continue typical job life till 60 years? But do you think it is so easy to get retire early and live a happy life? These days early retirement is a very common topic among working people as the everyday job is getting hectic and people are struggling to balance their work life balance. Some people are choosing their passion over work and finding out some alternative way of making money to get retired from the regular 9-5 jobs. Whatever be the reason for early retirement, the question is are you ready to retire early?
Top 5 checklist to ensure you can retire early
In this article I will try to share my views on how one can plan or what are the aspects you have to consider while you are planning for early retirement.
Have you saved Enough Money: This is a very basic question which is directly linked with retirement. Often we find people who has a very solid background like huge ancestral property or wealth. They can easily leave their jobs and get themselves fit into their chosen life. But do you have that flexibility? If not, have you done enough investments & saved money so that you can live a life of 40 years without making any money? I am assuming you will retire form 35-40 years of age and you will live till 75 years.
How much money you need to retire? Now this the obvious question which comes after the first one. I will not be able to tell you the exact figure, as I don’t know what kind of life style you are carrying and what kind of life style you want to carry after retirement. You can find many online retirement calculators with whom you can calculate your retirement corpus and also plan your finances accordingly.
How early you can be debt free? How early you can be free from all kind of loans like Home loan, car loan, personal loan etc? The early you can achieve your goals, the early you will be debt free and the more you can accumulate money for your retirement corpus.
What could be the major expenses during retirement? Even though you have fulfilled all your responsibilities and targets do you know what are the major expenses that can come in your life? One of such is Health insurance. As the cost of medical treatment is rising up, you have to make sure you are always insured to get enough cover against critical illness. Otherwise on an unlucky such event you may lose huge portion of your accumulated money and your retirement life could land in a bizarre situation. Other expense could be travel expenses. I think no one can simply sit on his/her flat for 30 years to enjoy retirement. Similarly there could be many more such expenses.
Do you really want to sit idle without earning money? Yes, we all know the typical meaning of retirement. But is it really enjoying and comfortable for you to simply pass time for 30-35 years without making any money. Do you know how much investment or corpus you have to save to live such a long life to the fullest? The best thing could be, you should find out an alternative way of making money or in other words some passive income ways to get your self engage and also make money at the same time. This will help your retirement dreams to achieve very soon. You can be more confident and independent, your savings will nourish with time and you will feel really happy to get retire form typical 9-5 job.
So, are you planning to retire early? You might be thinking what about myself as I am lecturing here. Well, I have the same dream like you, but frankly speaking I am still far away to meet these checklist to get myself ready to retire early 🙂